April 14, 2011

Saying the clock is ticking toward a “doomsday” fiscal implosion in Illinois, Senate Republicans have proposed dramatic action to revive the Illinois jobs climate, enhance economic development and generate new state revenues.

The 30-point plan would seek to immediately ease restrictions on job growth and attract businesses back to Illinois, many of which have been wary of locating in the Land of Lincoln because of the state’s recent income tax hike and other policies harmful to companies.

“During the past decade, Illinois government has been openly hostile to the Illinois business community,” said Senate Republican Leader Christine Radogno (R-Lemont). “Higher fees, higher taxes and greater regulations have driven away businesses and jobs, and put those companies that have survived at a competitive disadvantage with those in other, more pro-growth states. It’s time for the war on business to end, and for the public and private sectors to work together to revive our economy and bring back high-quality jobs.” (Read the Full Plan)

“No state ever taxed its way into prosperity,” said State Sen. Kirk Dillard (R-Hinsdale). “For too long, state leaders have taxed and regulated Illinois companies out of competition with businesses in neighboring states to the point where Illinois now lags the rest of the nation in its job growth and economic outlook. It’s time for Springfield to step up to the plate, hit the reset button, and help them compete again in the global marketplace.”

The Republican senators are putting forth a menu of proposals aimed at stimulating job creation and business development, beginning with changes to the state’s costly workers’ compensation system.

“If we’re going to be serious about reviving the Illinois economy, real and meaningful workers’ compensation reform must be a top priority this session,” said Radogno. “While other states have aggressively moved to rein in their workers’ compensation costs, Illinois’ costs have grown by 14 percent during the past few years. Unless that changes, Illinois will never become a magnet for businesses and the jobs they provide.”

While the lawmakers gave credit to Gov. Pat Quinn for putting forth a workers’ compensation reform package, they noted it lacks the necessary teeth to truly tackle the burgeoning problem.

“Standards that determine whether a workplace actually caused or aggravated a worker’s condition are an integral part of the compensation reform discussion,” Radogno said. “I urge the Governor and our colleagues on the other side of the aisle to join us in truly reforming the system.”

Other proposals unveiled by the Republican lawmakers include enacting a permanent Research and Development Tax Credit to boost their competitiveness, striving to make Illinois a leader in the areas of nanotechnology and green manufacturing, streamlining businesses’ ability to get permits and licenses, and imposing a moratorium on the imposition of new healthcare mandates.

Support for agriculture – Illinois’ number one industry – also plays a prominent part in the Republican proposals, which call for protections of the sales tax exemption on agriculture purchases and renewed support for agriculture research.

“Our agri-business community is the heartbeat of the Illinois economy,” said State Sen. Shane Cultra (R-Onarga). “Advancements on the farm or in the laboratory are usually the result of a strong environment for innovation. If our farmers constantly face the specter of excessive taxes or over burdensome EPA regulations, how can we expect them to succeed?”

State Sen. Sue Rezin (R-Morris) says streamlining government bureaucracy and easing businesses’ ability to obtain state permits is also key in turning the Illinois economy around.

“Many times state agencies will drag their feet and sit on a permit years before proceeding,” Rezin noted. “If we are going to get serious about job creation, expediting the permit process and cutting the bureaucratic red tape must play a part of the solution. Predictability is very important to business, and by defining a process and timetable for receiving a permit, businesses can now plan better for the future.”

Several Illinois business leaders have expressed their support for the Republican initiatives, saying it is imperative to begin a dialogue on how to restart Illinois’ sagging economy.

“The best thing state government can do to create jobs is foster an economic environment that helps rather than hinders the small-business community,” said Kim Maisch, director of the Illinois chapter of the National Federation of Independent Business, representing thousands of businesses across the state. “Under Illinois’ current economic climate, Illinois employers face many taxes, fees and regulations that drive up costs and put us at a competitive disadvantage with businesses in other states. Many of the proposals outlined by the Senate Republicans today will help reduce those costs, spur economic development and enable Illinois’ small businesses to get back in the fight.”

“We applaud this effort to create a strong economy that will lead to job growth and additional investment in Illinois,” said Mark Denzler, Vice President and Chief Operating Officer of the Illinois Manufacturers’ Association. “Many of the components of this job plan, especially real and meaningful reform of workers’ compensation, will aid manufacturing which employs 580,000 workers and contributes the single largest share of the state’s GDP.”

The Republican senators say they are eager to work with their Democrat colleagues to pass meaningful job recovery legislation to send a powerful message that Illinois is serious about making the state friendly to businesses and economic growth.

“It’s crucial for Republicans and Democrats to come together and speak with a single voice that Illinois is open for business and jobs,” Dillard said. “To his credit, Senate President Cullerton has stated his willingness to negotiate with Republicans in tackling the fiscal crisis, but we must also take that same sense of urgency in addressing our economic crisis as well, because the two go hand in hand. Our plan isn’t just about helping business for business’ sake, it’s  about creating jobs and generating crucial new tax dollars to pay down our debt and pay for our pressing priorities. We must make Illinois a ‘Destination Economy’ where job creators will expand or locate their businesses.”